Arrivederci! Benitez is saying goodbye to Inter Milan after short reign

Inter Milan have confirmed that Rafa Benitez's troubled reign as manager is over after the Spaniard agreed a pay-off.

Sportsmail revealed on Monday that the former Liverpool boss would be axed after challenging club president Massimo Moratti to back him or sack him over plans for the January transfer window.

Fuming Moratti decided to latter option and Inter are now expected to turn to former AC Milan boss Leonardo on a contract till the end of the season.

A statement on the Serie A side's website read: 'Inter Milan and Rafael Benitez can announce that they have reached a
mutually satisfactory agreement for the early termination of his
contract.

'Inter thank Rafael Benitez for his work in leading his team to success in the Italian Super Cup and the FIFA Club World Cup.'

Benitez is expected to spend Christmas on Merseyside, where he still has a home, and there are plenty in Liverpool who wish he was still the man in charge at Anfield.

Roy Hodgson has come under pressure after a disappointing start to the season but said on Wednesday that he did not feel threatened by his predecessor heading back into the jobs market.

Hodgson said: ‘If Rafa Benitez was the right man for the job, it would have been wiser not to let him go and then after six months bring him back again.

‘This job will always have lots of people linked with it. When you are in one of the top jobs in the country, it would be very strange if other people were not linked with your job.

‘I’m sure a lot of people are very envious of my position at this club and would like to take my place.’

Last hurrah: Inter became world champions in Benitez's final game in charge of the club

Under pressure: Hodgson

Benitez's pay-off has not been revealed, though reports in Italy suggested he was looking for nearly £7million. The former Valencia boss banked a £4m when sacked by Liverpool in the summer.

His agent Manuel Garcia Quilon met on Wednesday with Inter vice-president Rinaldo Ghelfi and technical director Marco Branca, as well as the club lawyer Angelo Capellini.

The 50-year-old's future at had looked bleak ever since a bizarre press conference followed Inter's victory in the Club World Cup final on Saturday.

Benitez called for Inter president Massimo Moratti to get the chequebook out after an otherwise poor start to the season. The five-time reigning Serie A champions sit seventh in the 2010-11 table while they only qualified second in their Champions League group behind competition debutants Tottenham.

Inter's season has been undermined by injuries, but with a 13-point gap to make up to leaders and city rivals AC Milan Benitez came under intense fire just six months into the job.

Benitez always had a tough task in succeeding Jose Mourinho, who led Inter to the Serie A, Coppa Italia and Champions League titles last season before leaving for Real Madrid in the summer.